Indonesia: Country's largest brewery to pay dividends worth Rp 66.6b

Indonesia's largest brewer, PT Multi Bintang Indonesia (MBI), will distribute a final dividend worth Rp 66.6 billion (US$7.6 million), or Rp 3,165 per share, to its shareholders next month, The Jakarta Post posted May 16.

Chief commissioner Cosmas Batubara told shareholders at the company's annual meeting in Jakarta on Monday May 15 that shareholders registered as per June 12 at the latest would receive their dividends by telegraphic transfer or check.

In October last year, MBI paid out an interim dividend of Rp 42.14 billion, the equivalent of Rp 2,000 per share, bring its total dividend payments to Rp 108.8 billion, or Rp 5,165 per share.

The company's net profit dropped 0.34 percent from Rp 87.3 billion in 2004 to Rp 87 billion in 2005, even though its net sales jumped 19 percent from Rp 710 billion to Rp 852 billion.

President director Michiel Egeler said that this year he expected stable growth in MBI's production despite the expected increase in operating costs as a result of higher fuel prices.

MBI produces Bir Bintang, Bintang Zero, Green Sands, Heineken, and Guinness.

Newly appointed director Jasper C. Hamaker said the company was seeking to maintain its share of the premium beer market.

"We are targeting this market segment because consumers have proven themselves to be loyal and not too sensitive about price. We are very confident about this as we have international brands, such as Heineken," he said.

Most MBI products hold dominant positions in the domestic market. Heineken holds between 40 and 50 percent of the premium beer market, Bir Bintang about 60 percent of the standard beer market, and Guinness 80 percent of the stout market.

Hamaker added that he hoped to see double-digit growth in Heineken sales this year as the premium market was still relatively small -- only two to three percent of the total beer market.

The overall beer market in Indonesia increased slightly over the past three years from 1.4 million hectoliters (hl) in 2003 to 1.6 million hl in 2004, and 1.8 million hl in 2005.

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